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Practical Application: Competitive Market Characteristics Infographic

Instructor: Amanda Robb
This infographic will help you recall the characteristics of a competitive market. You can print this infographic and use it to share the information with colleagues in your workplace as well.

What Are the Characteristics of a Competitive Market?

A competitive market is one that is flooded with many choices for goods and services, which creates competition to produce what the consumer needs. There are five main characteristics of a competitive market:

  1. Profit
  2. Diminishability
  3. Rivalry
  4. Excludibility
  5. Rejectability

These characteristics can be represented in an infographic. Infographics are helpful ways to visualize information to help you retain the information and to share it with others.

infographic

Analysis

The first characteristic of a competitive market is that it needs to be profitable. Companies will only enter a market if they know there's a possibility of making money.

Next is the characteristic of diminishability. This means that as goods are sold, there are less of them, increasing the demand for consumers. This keeps the market moving and consumers wanting more.

Next is rivalry, which we know as competition. There is competition between companies to make the best product and between consumers to buy the best product before the stock diminishes.

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